Trailing net profit reached 153.6bn, fell 863.3bn compared with the same period last year. Key positives came from lower selling expenses and higher financial income. Offsetting pressure came mainly from lower gross profit, lower associates income, and higher finance costs. Detailed impact is shown below:

Net margin fell to −15.86%, losing 40.8pp. The main pressure is SG&A / Revenue rose 7.7pp, outweighing the improvement in Gross margin rose 15.5pp (with lingering pressure from Net financial result / Revenue fell 6.9pp and Other profit / Revenue fell 4.0pp).

The pressure comes from core operations — this is a concerning type of decline, not a one-off movement.

Developer revenue is recognised at handover — large swings between quarters are a property-sector feature, not a business trend. Read on a TTM basis and against the delivery schedule.

2024Q4: 2,020.4bn

2025Q1: 186.9bn

2025Q2: 138.1bn

2025Q3: 221.5bn

2025Q4: 52.6bn

2026Q1: 562.7bn

ROIC fell to −0.06%, losing 7.6pp. That translates to −0.06 in after-tax operating profit for every 100 units of operating capital. Both NOPAT margin narrowed 26.1pp and capital turnover fell 0.20x, with invested capital holding roughly steady — pressure came from both operational efficiency and asset efficiency.

For real estate developers, ROIC moves with project cycles — this is a reference signal, and the real assessment needs upcoming handover periods.

ROIC for residential developers swings with project cycles and handover timing — the balance sheet below adds perspective. Capital structure is notably light for the real estate sector — liabilities at 0.99x equity, net debt at 0.45x equity.

Customer advances 5.5bn (as of 2026Q1) — deposits on units/projects not yet handed over: revenue already sold but not yet recognised, a lead indicator of profit in upcoming delivery quarters. Advances fell 96.06% without a matching rise in TTM revenue — sales pace to watch. Advances cover only 1.83% of current inventory — most of the pipeline is not yet pre-sold.

Customer advances: 5.5bn · YoY −133.9bn · QoQ +0.0bn

Locked-in revenue: ~0.02x quarters of revenue (TTM)

Inventory pre-sold: 1.83%

Project inventory splits in two at 2026Q1: 300.2bn near-delivery stock (short-term) and 128.0bn construction-in-progress (long-term). Weighted toward near-delivery — the revenue-recognition cycle is approaching.

Near-delivery (ST): 300.2bn (70.11%)

Construction-in-progress (LT): 128.0bn (29.89%)

For a developer the question is not debt-to-equity but whether borrowings are backed by the project pipeline. At 2026Q1, net debt 2,893.0bn vs project value 428.2bn — ratio 675.60% — net debt is 6.76x the project pipeline, far beyond the asset layer that should back it. Leverage sits in high-risk territory; repayment depends on sources outside the current pipeline.

Net debt / project value: 675.60%

None

Over the last 12 months, working capital absorbed 1,008.3bn of cash, mainly because of lower payables. Part of that drag was offset by lower receivables and lower inventories.

Leverage warrants monitoring, with net debt / equity at 0.45x and interest coverage only at 0.01x.

At present, short-term debt accounts for 37.8% of total debt, cash equals 9.0% of debt, and total debt stands at 3,180.7bn.

Leverage for residential developers should be read alongside project cycles, development inventory, and handover timing.

Operating cash flow reached -1,057.4bn in 2025, against investing cash flow of 1,065.8bn.

Post-investment cash flow was positive +8.4bn. Financing cash flow was positive +196.2bn.

CFO / net income was −0,68 lần.

Track how much investment can be funded internally from operating cash flow.

For residential developers, FCF and CFO swing with project cycles — negative during investment phases and positive at handover — not representative of single-year efficiency.